* JGBs lifted as Nikkei gains limited despite GDP rise

* Moody's: Japan CDS widening not a "turning point"

* Japan sovereign CDS continues to tighten

* MOF eyes shorter JGBs to offset tax shortfall

By Shinichi Saoshiro

TOKYO, Nov 16 (Reuters) - Japanese government bonds edged higher on Monday and the yield curve flattened as Tokyo stocks struggled to capitalise on supportive factors, although the rise in debt prices was limited by profit taking following last week's sharp gains.

The JGB market took higher-than-expected Japan GDP numbers released on Monday in stride, with economists saying growth will begin to slow as falling wages reduce the effectiveness of government stimulus. [ID:nT347055].

Bond investors were also given another reminder that deflation is a threat to the economy, with the Nikkei business daily reporting on Monday that the Japanese government is set to announce the economy has fallen into deflation in a monthly report. [ID:nT146266]

The benchmark 10-year yield JP10YTN=JBTC dipped 0.5 basis point to 1.330 percent, matching a four-week low brushed on Friday. It rose to a five-month high of 1.485 percent early last week on concerns over Japan's worsening fiscal situation but declined sharply when such concerns eased, posting its biggest weekly fall since December.